No money for Nunavut infrastructure in federal budget

Nunavutleaders were grantedat least one of their main federal budget wishes yesterday, but otherwise they were left wanting.

"I don't think we're getting any money for energy," says KeithPeterson, Nunavut's finance minister. He was pushing for money to pay for needed upgrades to the territory's power plants and generators.

Now, Peterson says, the territory has to come up with a 'Plan B.'That may involve going further into debt.

The territory asked the government to raise itsdebt cap, and the budget is proposing to do just that from $400 million to $650 million. It's good news for the territorial government, but less thanwhat it asked for. Nunavutwantsto borrow up to $750 million.

Peterson was also hoping for money for housing, but there was no specific mention in the budget ofNunavut's needs. Instead, the federal governmentis proposing to spend $150 million over four years to support social housing providers in Canada. It's not clear how much of that money could find its way to Nunavut.

Nunavut Tunngavik, Inc. president Cathy Towtongiesays she was happy to see help for seniors and children in the budget, but felt there should have been more focus on the needs of the North.

"There has to be long-term strategy instead of band-aid solutions, in terms of food security, [and the]infrastructure deficit for the Arctic," Towtongie says.

Finding markets for seal products

The budget included a few references to Canada's Arctic. It says the government will spend $30 million dollars over five years in part to improve marine safety in the Arctic, but also to improvemarine emergency preparedness in southern Canada. $34 million has been earmarked "to continue to support meteorological and navigational warning services in the Arctic."

The government is also proposing to spend $5.7 million to promote Canadian seal products.

"This is huge for Inuit," says NunavutMP Leona Aglukkaq. She says the government hopes to certify seal products from traditional Inuit hunts,to take advantage of an exemption to the European Union'sseal products ban.

"We need to work in partnership with the EU. And we're very close to accomplishing that," Aglukkaq says. "But we needed the resourcesto set up those businesses."

Aglukkaqsays the government doesn't have a timeline for when this certification process will be completed, butshe expects it will be soon.

Towtongiewelcomesthe seal productsinitiative, but saysshe has questions abouthow itwill work.

"I have not seen a strategy in place, but I was glad to see the dollars," she says.